Unconventional Cash Flow

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Dictionary Says

Definition of 'Unconventional Cash Flow'

A series of inward and outward cash flows over time in which there is more than one change in the cash flow direction. This contrasts with a conventional cash flow, where there is only one change in cash flow direction. In terms of mathematical notation - where the - sign represents an outflow and + denotes an inflow - an unconventional cash flow would appear as -, +, +, +, -, + or alternatively +, -, -, +, -.

The term is particularly used in discounted cash flow (DCF) analysis. An unconventional cash flow is more difficult to handle in DCF analysis than conventional cash flow since it may have multiple internal rates of return (IRR), depending on the number of changes in cash flow direction.

Investopedia Says

Investopedia explains 'Unconventional Cash Flow'

In real-life situations, examples of unconventional cash flows are abundant, especially in large projects where periodic maintenance may involve huge outlays of capital. For example, a large thermal power generation project where cash flows are being projected over a 25-year period may have cash outflows for the first three years during the construction phase, inflows from years four to 15, an outflow in year 16 for scheduled maintenance, followed by inflows until year 25.  
Search results for

'Unconventional Cash Flow'

  • An Introduction To Corporate Valuation Methods

    http://www.investopedia.com/articles/financial-theory/11/corporate-project-valuation-methods.asp
    ... Another error arising with the use of IRR analysis presents itself when the cash
    flow streams from a project are unconventional, meaning that there are ...

  • Exxon Mobil Deal Validates Unconventional Resource Plays

    http://stocks.investopedia.com/stock-analysis/2009/Exxon-Mobil-Deal-Validates-Unconventional-Resource-Plays-XOM-XTO1216.aspx
    ... exploration and production business model of developing the US unconventional resource
    base ... are legacy assets that the companies hold for cash flow with very ...

  • Wal-Mart Shares On The Discount Shelves

    http://stocks.investopedia.com/stock-analysis/2010/Wal-Mart-Shares-On-The-Discount-Shelves-WMT-TGT-JCP-KR-WFMI0709.aspx
    ... this period. A Focus on Capital Generation A more recent positive development
    has been a focus on generating free cash flow. Sales ...

  • Honeywell Signals a Stable Economy

    http://stocks.investopedia.com/stock-analysis/2011/Honeywell-Signals-a-Stable-Economy-HON-PTR-BA-UTX-BWA-APD1025.aspx
    ... solid economic growth for the remainder of 2011 and into next year, which should
    put prospective investors at ease; so should the reasonable cash flow multiple ...

  • Oneok: Growth And A Dividend

    http://stocks.investopedia.com/stock-analysis/2010/Oneok-Growth-And-A-Dividend--OKE-OKS-AGL-GPN-WWW1014.aspx
    ... a company tied into growth from the development of domestic unconventional resource
    basins. ... income over the next three years, leading to free cash flow of $150 ...

  • Dividend Income From Your Dinner Table

    http://stocks.investopedia.com/stock-analysis/2010/Dividend-Income-From-Your-Dinner-Table-GIS-K-KFT-MKC-BGS-SLE0622.aspx
    ... McCormick yields under 3% right now, but the company is a prodigious generator of
    levered free cash flow ($350 million at the end of 2009) and a conservative ...

  • Layne Christensen Could Be Better

    http://stocks.investopedia.com/stock-analysis/2011/Layne-Christensen-Could-Be-Better-LAYN-FCX-MLI--BLGPY.PK1213.aspx
    ... must prove that it can consistently deliver free cash flow, if this ... acquisition-adjusted
    "growth" of negative 6%. The company's unconventional energy business ...

  • Penn Virginia Turning Coal Into Cash

    http://stocks.investopedia.com/stock-analysis/2010/Penn-Virginia-Turning-Coal-Into-Cash-PVR-BTU-ACI-MEE-RRC-EOG-ARLP-NRP0512.aspx
    ... While gas midstream operations tend to be inherently cash flow-generating businesses,
    Penn Virginia also exploits its coal assets in a way that focuses on cash ...

  • Conoco Phillips Improves Operations And Earnings

    http://stocks.investopedia.com/stock-analysis/2011/Conoco-Phillips-Improves-Operations-And-Earnings-COP-BP-SU-TOT-CNQ0202.aspx
    ... free cash flow in the quarter. Future attempts to deploy capital will be in potentially
    higher margin projects, such as the oil sands and unconventional shale ...

  • Royal Dutch Shell Updates Growth Plan

    http://stocks.investopedia.com/stock-analysis/2012/Royal-Dutch-Shell-Updates-Growth-Plan-RDS-A-RDS-B-BP-MDR0206.aspx
    ... Unconventional Plays Royal Dutch Shell has an immense worldwide position in various
    tight ... Cash Flow Royal Dutch Shell reported $136 billion in cash flow from ...

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